Colombia Plans to Launch Digital Currency to Reduce Tax Evasion

The authorities of Colombia revealed it has plans to motorboat a integer currency. One of the purposes of this caller currency would beryllium to curb taxation evasion and heighten the traceability of transactions made by citizens. The projected measurement would besides beryllium accompanied by restrictions connected currency payments and transactions of implicit 10 cardinal Colombian pesos ($2,400).

Colombia to Launch Its Own Digital Currency

Many countries are present looking to digitize portion of their economies successful bid to amended recognize and power the travel of wealth successful their economies. The authorities of Colombia is readying to motorboat its ain integer currency successful the adjacent future, according to statements offered by Luis Carlos Reyes, caput of the DIAN, the Colombian taxation authority.

Reyes told section quality outlet Semana this would beryllium 1 of the proposals of the recently inaugurated president Gustavo Petro successful bid to curb taxation evasion, estimated to beryllium betwixt 6% and 8% of the GDP of Colombia. On this note, Reyes stated that the intent of this integer currency would beryllium to heighten the traceability of these transactions truthful merchants cannot evade taxes utilizing currency arsenic a outgo method.

On the effectiveness of the measure, Reyes estimated:

This is equivalent to six oregon 8 taxation reforms that person been made successful the country, with which a maximum of 1% oregon 1.5% of GDP is obtained.

However, Reyes did not disclose immoderate traits of the integer currency oregon the mode successful which it would enactment alongside the accepted outgo systems successful the country.

Cash Restrictions

The instauration of the integer currency would besides beryllium accompanied by different measures that are presently being studied. One of these measures is simply a regularisation connected payments successful currency implicit a definite amount. Reyes confirmed this magnitude would beryllium 10 cardinal Colombian pesos, oregon astir $2,400.

However, these changes mightiness disrupt the outgo channels of Colombians. While the usage of currency for payments was reduced during the Covid-19 pandemic, currency is presently 1 of the main methods of outgo successful Colombia. Statistics from the Central Bank of Colombia amusement that the circulation of bills has risen to its highest fig successful 17 months.

According to data from the Financial Superintendency, Colombians inactive similar currency arsenic their main outgo method erstwhile paying for proscription (94%), groceries (80%), compartment telephone top-ups (78%), and rent (77%).

What bash you deliberation astir the connection of a integer currency successful Colombia and the projected restrictions connected currency payments? Tell america successful the comments conception below.